HomeMy WebLinkAboutCC MINUTES 2006 05 01MINUTES OF THE REGULAR MEETING
OF THE CITY COUNCIL
TUSTIN, CALIFORNIA
MAY 1, 2006
CALL TO ORDER - 5:30 P.M.
ATTENDANCE
Present: Mayor Doug Davert; Mayor Pro Tem Tracy Worley Hagen;
Councilmembers Jerry Amante, Lou Bone, and Tony Kawashima
Absent: None
City Clerk: Pamela Stoker, City Clerk
Others Present: William A. Huston, City Manager and Douglas C. Holland, City
Attorney
PUBLIC INPUT -None
CLOSED SESSION ITEMS
A. CONFERENCE WITH LEGAL COUNSEL--EXISTING LITIGATION pursuant to
Government Code Section 54956.9(a)
• AAE vs. City of Tustin
B. CONFERENCE WITH REAL PROPERTY NEGOTIATOR pursuant to Government
Code Section 54956.8
Property 305 East Main Street
Negotiators: Assistant City Manager Christine Shingleton (City) and Cathy
Sipia of Cathy's Kids Club
Under Negotiation: Acquisition
RECESS - At 5:31 p.m. City Council recessed to closed session to discuss matters listed
under Closed Session.
RECONVENE - At 7:01 p.m. City Council reconvened in public session.
City Council Meeting May 1, 2006
Minutes Page 1 of 9
PUBLIC MEETING
CALL TO ORDER - 7:12 P.M.
INVOCATION -Father John Block, St. Cecilia's Church
PLEDGE OF ALLEGIANCE - Councilmember Lou Bone
ROLL CALL
Present: Mayor Doug Davert; Mayor Pro Tem Tracy Worley Hagen;
Councilmembers Jerry Amante, Lou Bone, and Tony Kawashima
Absent: None
City Clerk: Pamela Stoker
Others Present: William A. Huston, City Manager and Douglas C. Holland, City Attorney
CLOSED SESSION REPORT -Nothing to report.
PROCLAMATION -Presented by Mayor Davert to Parks and Recreation Superintendent
Gary L. Magill for his invaluable service to the City of Tustin
FIRST PUBLIC INPUT -None
PUBLIC HEARING
1. PROPOSED WATER SERVICE RATES
The City of Tustin's water rates were last adjusted in November 1994. A
comprehensive Water Rate Study was undertaken in 2004 to evaluate the future
operation and capital needs of the water distribution system. An active rate
model was developed so that we may continuously monitor the financial health
of Tustin's water system. The City's Audit Committee reviewed and approved
the recommendations contained in the study. Based on the current factors
generated by the model, staff is recommending a 13.5% increase in water
service rates effective June 1, 2006, with additional increases of 11.45%
scheduled for January 2007 and 10% in January 2008.
Legal Notices were mailed out to all customers.
Presentations by Water Services Manager Fred Adjarian, Finance Director Ron
Nault and City Manager William Huston.
• Presentation highlights include:
City Council Meeting May 1, 2006
Minutes Page 2 of 9
Factors affecting rates.
• Rate components.
• Current rate structure.
• Proposed rate increase.
What Does Tustin Water Services Spend Money On?
• Operations and maintenance: "keeping the water flowing."
• System repair and replacement: reservoirs, wells, pipes, pump stations.
• Debt service on past water system CIP's.
• Tustin Water Services does not subsidize other City operations.
Key Factors Affecting Rates
• Rising energy costs.
• Higher wholesaler costs of imported and groundwater supplies.
• Replacement of aging capital facilities.
• State and federal water quality requirements.
• Increased O & M expenses.
Water Rate Components
• Two Cost Components in Rate Structure:
o A fixed charge reflecting service demands made on the City's water system,
based on customers water meter size.
o A consumption charge driven by the consumption habits of individual
customers.
Current Water Rates
• Customers Billed Every Two Months
• Fixed Charge:
o $16.00 for most customers
o Higher for customers w/larger water meters
• Consumption Charge:
0 0-6 HCF: $0.35/HCF
0 7-40 HCF: $1.12/HCF
0 41-60 HCF: $1.20/HCF
o >61 HCF: $1.32/HCF
• Typical Resident Uses 40 HCF [1 HCF = 748 gallons]
• Typical Bi-Monthly Water Bill Approximately $56.00
Why Increase Rates?
• Last rate increase in 1994. Funded initial phase of multi-year CIP and O&M
expenses.
• Capital projects completed:
o Main Street Reservoir and Well No.4 ($ 9.5 M)
o Foothill Reservoir Repair ($0.7 M)
0 17th Street Desalter and Well No. 4 ($ 7.7 M)
o Rawlings Pump Station/Reservoir Repairs ($ 2.3 M)
o Vandenberg Well ($ 0.4 M)
o SCADA Upgrade ($ 0.8 M)
City Council Meeting May 1, 2006
Minutes Page 3 of 9
o Well electrical upgrades ($ 0.9 M)
0 84,480 feet of water main replaced ($ 6.4 M)
o Ready to move forward with next CIP phase.
o Storage and production critical to maintaining system reliability and reducing
reliance on costly imported water:
o Rawlings Reservoir Replacement Project ($ 16 M)
o Simon Ranch Reservoir ($ 4 M)
o Pasadena Well ($ 2 M)
o Tustin Avenue Well ($ 2 M)
o Four [Est.] Additional New Wells ($8 M)
o Rate increase needed to cover bond issuance and maintain City's bond
credit rating.
Why Is Storage Important?
• Water storage has three components:
o Operational: storage required to meet differential between available supply
and daily demands.
o Fire Flow: volume of water needed to supply a specific fire flow for a specific
duration.
o Emergency: reserve needed to meet system demands during natural
disasters, supply shortfalls, pipeline failures, outages and other
emergencies.
Production Key to Reliable Supply
• Need adequate source capacity to meet maximum day demands.
• About 70 - 80% of City's supply from local groundwater basin managed by
OCWD. -
• Groundwater less expensive [$300/AF] than imported Metropolitan water
[$510/AF].
Compared various water agencies and reviewed projected Capital Improvement
Project ash flow analysis for next 5 years.
The public hearing opened at 7:51 p.m. The following people spoke in
opposition to the water rate increase: Antonio Santos, H. M. Olson, Dave Leahy,
Berklee Maughan, Earl Williams, George Guthrie, Bill Utley, Matt Nisson, and
Pam Amelotte. The public hearing closed at 8:26 p.m.
Chief Deputy City Clerk Huizar reported that 548 valid written protest letters were
received.
Mayor Pro Tem Hagen indicated that 40% increase is excessive, affected
residents need further explanation. Would like to delay decision to provide
opportunity for residents to review comprehensive information on rate increase.
Councilmember Bone reported that current water infrastructure not adequate.
Increase amounts to 3% increase over 12 year period. Bonds were used in the
past and will continue to fund major projects, increase will generate about $4
City Council Meeting May 1, 2006
Minutes Page 4 of 9
million. Supports staff recommendation. Recommends CPI increase to be done
on a regular basis.
Councilmember Kawashima suggested incremental increases.
Councilmember Amante contemplated one-year raise and then discuss
additional raises. Need comprehensive look at future demands. Look at water
system as enterprise and as a commodity. Suggested that Mayor establish and
appoint various members of the community to a Water Committee to study
capital improvement, as well as study pricing, scope & depth of 2000 Water
Plan.
Mayor Davert reported that City took cautious approach for compliance with legal
notice under Proposition 218.
City Manager Huston commented on readjustment of rate tier to allow less
impact of increase on low-usage households. Usage would increase from 0-6 to
0-12/HCF
Motion: It was moved by Councilmember Amante, seconded by Councilmember
Bone, to adopt resolution as amended (first tier rate change to 0-12/HCF) and
establish an ad-hoc Water Commission. Motion carried 4-1 (Hagen opposed).
RESOLUTION NO. 06-54 - A resolution of the City Council of the City of
Tustin adjusting water service rates
CONSENT CALENDAR - It was moved by Councilmember Kawashima, seconded by Mayor
Pro Tem Hagen, to approve items 2 through 12 (Item 13 was pulled by Councilmember
Amante for separate discussion and Item 14 was Tabled). Motion carried 5-0.
2. APPROVAL OF MINUTES -REGULAR MEETING OF APRIL 17, 2006
Motion: Approve the Regular City Council Meeting Minutes of April 17, 2006.
3. APPROVAL OF DEMANDS AND RATIFICATION OF PAYROLL
Motion: Approve Demands in the amounts of $4,028,362.77 and $1,724,996.23;
Paid immediately in the amount of $2,700.00; and Payroll in the amount of
$566,898.94.
4. PLANNING ACTION AGENDA -APRIL 24, 2006
All actions of the Planning Commission become final unless appealed by the City
Council or member of the public.
Motion: Ratify the Planning Commission Action Agenda of April 24, 2006.
City Council Meeting May 1, 2006
Minutes Page 5 of 9
5. JOINT COMMUNITY FACILITIES AGREEMENT BY AND BETWEEN THE CITY
OF TUSTIN AND THE CITY OF SANTA ANA
The Cities of Tustin and Santa Ana have entered into a Joint Exercise of Powers
Agreement creating the Tustin-Santa Ana Transportation System Improvement
Authority. The Authority will be undertaking improvements at the intersections of
Dyer and Grand and Edinger and Grand. The City of Tustin wishes to fund our
portion of these projects from Community Facility District Bond proceeds. This will
require the Cities to enter into the Joint Community Facilities Agreement attached to
this report.
Motion: Authorize the City Manager to sign a Joint Community Facilities Agreement
by and between the City of Tustin and the City of Santa Ana.
6. APPOINTMENT TO FILL VACANCY IN BOARD OF DIRECTORS OF THE TUSTIN
AREA SENIOR CENTER FUND, INC.
City Council action is required to appoint Mary Hill to the Tustin Area Senior Center
Fund, Inc. Pursuant to the Articles of Incorporation and By-Laws, the Tustin Area
Senior Center Fund, Inc., consist of five (5) Directors. Due to the relocation out-of-
state of Janet Swartz, a vacancy currently exists in the Board of Directors. A
vacancy may be filled by appointment of the City Council.
Motion: Appoint Mary Hill to the Board of Directors of the Tustin Area Senior Center
Fund, Inc.
7. LEASE VEHICLES: SPECIAL INVESTIGATIONS UNIT
The Police Department is seeking approval of City Council to lease three (3) new
vehicles to replace three (3) existing leased vehicles that are nearing the end of their
contract.
Motion: Approve the following three leases: 2006 Nissan Altima and 2006 Nissan
Pathfinder from Tustin Nissan; and 2006 Toyota Highlander from Tustin Toyota.
8. DECLARATION OF SURPLUS EQUIPMENT
Motion: Declare the vehicles and related equipment detailed in the agenda report as
surplus and not required for public use, in accordance with the City Code, Section
1626 and authorize the Public Works Department to sell the equipment at public
auction.
9. AWARD OF BID FOR TWO (2) NEW 10-WHEEL DUMP TRUCKS
Motion: Award the bid for the purchase of two (2) new ten (10)-wheel dump
trucks, to Carmenita Truck Center in the amount of $248,567.38.
City Council Meeting May 1, 2006
Minutes Page 6 of 9
10. TUSTIN LANDSCAPE AND LIGHTING DISTRICT LEVY OF ANNUAL
ASSESSMENTS FOR FISCAL YEAR 2006-2007
The City Council, at their meeting of February 6, 2006, adopted Resolution No.
06-18, which ordered the preparation of an Engineer's Report for the Levy of
Annual Assessments for the Tustin Landscape and Lighting District. The
Engineer's Report has now been completed and approval is required.
Motion: Adopt the resolutions.
RESOLUTION NO. 06-52 - A resolution of the City Council of the City of
Tustin, California approving the Engineer's Report for the Tustin
Landscape and Lighting District Levy of Annual Assessments for Fiscal
Year 2006-2007
RESOLUTION NO. 06-53 - A resolution of the City Council of the City of
Tustin, California declaring its intention to provide for an Annual Levy of
Assessment for Fiscal Year 2006-2007 for the improvement, maintenance
and servicing of public landscaping and lighting facilities in the Tustin
Ranch area within the boundaries of the Tustin Landscape and Lighting
District and to levy and collect assessments pursuant to the Landscaping
and Lighting Act of 1972 and Proposition 218 and giving notice thereof
11. ACCEPTANCE OF PUBLIC IMPROVEMENTS AND RELEASE OF BONDS
FOR TRACT MAP NO. 16527(VOIT DEVELOPMENT COMPANY)
All public improvements associated with Tract Map No. 16527 have been
completed. In addition, all monuments associated with the Tract Map have been
set, inspected, and verified as complete. The Public Works Department is now
recommending acceptance of the public improvements and release of the public
improvement and monumentation bonds.
Motion: Accept the public improvements and release the following bonds in the
indicated amounts:
Faithful Performance Bond, No. 024-015-176 $ 1,209,000.00
Labor and Material Bond, No. 024-015-176 $ 604,500.00
Monumentation Bond, No. 024-015-178 $ 2,500.00
12. APPROVAL OF CONTRACT FOR CONSTRUCTION MONITORING FIELD
SERVICES WITH RICHARD C. SLADE & ASSOCIATES LLC FOR MAIN
STREET FACILITIES, WELL NO.4 REHABILITATION
Approval of the subject construction management services contract with Richard
C. Slade & Associates LLC to assist City staff in completing Water Well
Rehabilitation Project.
City Council Meeting May 1, 2006
Minutes Page 7 of 9
Motion: Direct the Mayor and the City Clerk to execute the contract documents
on behalf of the City with Richard C. Slade & Associates LLC subject to City
Attorney approval as to form.
13. CITY OF TUSTIN RESPONSE TO CITY OF IRVINE DRAFT SUBSEQUENT
ENVIRONMENTAL IMPACT REPORT FOR 2323 MAIN STREET PROJECT
City Council authorization is requested for the City of Tustin's response to the
subject Draft Subsequent Environmental Impact Report for a proposed City of
Irvine General Plan Amendment and Zone Change, Transfer of Development
Rights, and other discretionary actions to permit residential development
consisting of 445 multi-family condominium units at the northeast corner of Main
Street and Von Karman Avenue.
Councilmember Amante thanked staff for thorough review and comments on
project and requested continued review of forthcoming developments.
Motion: It was moved by Councilmember Amante, seconded by Mayor Pro Tem
Hagen, to authorize staff to forward the draft response letter to the City of Irvine.
Motion carried 5-0.
14. APPLICATION FOR BUILDING EQUITY AND GROWTH IN NEIGHBORHOODS
(BEGIN) FUNDS FROM THE CALIFORNIA DEPARTMENT OF HOUSING AND
COMMUNITY DEVELOPMENT
Motion: Item tabled.
REGULAR BUSINESS
15. CITY COUNCIL -LEGISLATIVE UPDATES
Councilmember Bone reported on US House of Representatives Bill to federalize
local streets and roads and give FCC authority over public-right-of ways.
Requested that staff send a letter to congressional representative.
SECOND PUBLIC INPUT -None
OTHER BUSINESS /COMMITTEE REPORTS
Councilmember Amante:
• Transportation Corridor Agency report on Financial Options for Foothill Eastern to help
reduce debt;
• State Department of Parks has opposed extension of Foothill South freeway due to its
City Council Meeting May 1, 2006
Minutes Page 8 of 9
location adjacent to environmental areas and a public park; and
Final report on Measure M extension of $.005 sales tax would be forthcoming.
Councilmember Kawashima:
• Karaoke night at Tustin Area Senior Center raised $4,100; and
• Announced that he would be absent at next City Council meeting.
Councilmember Bone:
• Workshop needed to address refrigerator boxes throughout the city.
Mayor Pro Tem Hagen:
• Orange County Fire Authority increased budget to allow for infrastructure cost increases.
Mayor Davert:
• Congratulations to local schools selected as 2006 Califomia Distinguished Schools;
• Attended Mayors Summit meeting, WiFi system discussed;
• Karaoke night at Senior Center was a big success;
• Attended Senior Center Volunteer Recognition ceremony;
• Urban Land Institute will assist staff with master planning for future of Tustin;
• Thanked staff for preparation of tonight's City Council meeting; and
• Adjourned meeting in memory of former Irvine Councilmember Dave Christensen.
ADJOURNED - 9:14 p.m. -Next meeting scheduled for May 15, 2006 at 5:30 p.m. for
Closed Session and 7:00 p.m. for Regular Session in the Council Chamber, 300
Centennial Way, Tustin, California
Adjourn in memory of
former Irvine Councilmember Dave Christensen
~~
P LA STO ,
City Clerk
City Council Meeting May 1, 2006
Minutes Page 9 of 9